BALANCE transfer cards are popular items in the world of credit these days but they don’t suit everybody.

There are hundreds of versions on the market offering interest rates starting at zero per cent for a certain period and, used carefully, can be a great device for dissolving debt.

For instance, if you transfer your debt to a fee-free balance transfer card offering zero per cent interest for 12 months and then pay it all off over that period you’ll save plenty.

But not everyone is able to repay their debt within 12 months

“If you have a debt you can pay off within the interest-free period you might save hundreds of dollars in interest,” says Michelle Hutchinson, money expert at creditcardfinder.com.au.

“But if you have only have 12 months you need to factor in whether you can afford to pay it all off over the interest free term. It may not be worthwhile if they charge you an annual fee and you have debt owing once the interest-free period ends.”

If you struggle to pay off the total owing each month, rather than paying interest at a high rate then opt for a low-rate card or get a personal loan to clear the debt.

Join the Big Debt Switch.Source:Supplied

On a debt of $5000, if you could afford to repay $200 over two years you might be attracted by a balance transfer card that charges zero per cent for 24 months.

But with an annual fee of $200 and a revert interest rate of 21.75 per cent after 2 years you will end up paying $638 on top of your original debt of $5,000, according to Canstar.

However, if you use a low rate card with a $36 annual fee it would take you the same amount of time to pay off and the interest would be $607.

The Big Debt Switch, a campaign by consumer group One Big Switch supported by News Corp Australia to lower the cost of debt has attracted almost 60,000 people.

It has unlocked two offers for people wanting to pay down their debt including a low rate Visa card from Community First Credit Union, which has an introductory interest rate of 6.99 per cent for the first 12 months.

There is also a $100 gift card offer from peer-to-peer lender Society One which offers personal loans, based on your credit rating, starting at 8.95 per cent.